economic analysis that makes recommendations about economic policy.
Analysis that contains value judgments, either implicitly or explicitly (see Economics or Positive Economics).
This orientation stresses humanitarian values in economic analysis as opposed to the hard realities of market analysis.
Normative economics considers "what ought to be"--value judgments, or goals, of public policy. Positive economics, by contrast, is the analysis of facts and behavior in an economy, or "the way things are."
deals with ethical issues and value judgments such as tax and welfare rates, the distribution of income, etc.
Normative economics is the study of "what should be" in economic matters. Normative economics is subject to, and relies on, personal biases, opinions, and moral beliefs which may cloud the question at hand. The study of normative issues is more than likely to exist in the realm of political science and philosophy than in the strict study of economics, although economists occasionally study normative topics. Contrast with positive economics.
Normative economics is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. Normative economics looks at the desirability of certain aspects of the economy. It underlies expressions of support for particular economic policies.